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Improvements to fix ‘very serious concerns’ over how Nottingham Council controls its money are proving difficult to put in place, according to the authority.

Accounting firm Ernst and Young (EY) reviewed the authority’s finances and in June a secret report concluded it had ‘very serious concerns’ over how money is controlled.

It was asked to review the council’s accounts following the uncovering of significant misspending in the council’s Housing Revenue Account in 2021.

It is estimated the cost of the problem is around £51 million.

Nottingham City Council admits it is having difficulty putting in place fixes for its financial worries. Photo: Submitted

In response the firm was commissioned again to deliver a 12-week remediation programme following its review.

While audit committee documents, which will be discussed on September 29, say the programme is ‘on track’ and controls on all 39 issues have been agreed, only 38 per cent of improvements have been fully put in place so far.

Shabana Kausar, director of finance, said in July the authority should have the improvements in place in September.

Council documents say: “Weekly project checkpoint meetings with EY are being held with additional meetings held with the corporate director finance and resources to provide progress and seek decisions at relevant milestones to ensure the control environment is improved at pace.

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“Subject to any additional findings identified through phase one of the remediations work, the improvements to the control environment are expected to provide the assurances required by the Section 151 officer to discharge their statutory responsibilities.

“To end of August, all of the 39 remediation activities identified had agreed controls in place and 38 per cent have been fully implemented at the end of this period, three per cent as reported in July, with 62 per cent in process of being implemented over September.”

Branded ‘quick fixes’, they will help the council strengthen its financial leadership, design a robust system of internal financial controls and embed professional accounting practice.

The 39 improvements come as part of phase one of the programme and will ensure the council has the ‘essential basics in place’.

However it is anticipated further improvements will be needed.

The council added: “Some areas are challenging to implement interim measures for because they require a significant overhaul of systems for the council to meet statutory requirements.

“However, it is important these are identified and closed in the next phase of the remediation works.”

Fixes for serious financial concerns at Nottingham City Council proving hard to put in place